K&H Banking Group reports a net profit of HUF 57.8 billion in 2018

K&H Banking Group had a strong financial performance in 2018 and recorded HUF 57.8 billion net profit in 2018, a 38% increase yoy. Excluding exceptional gains from property and financial instruments transactions K&H recorded HUF 53.6 billion net profit, a 28% increase yoy.

“In 2018 our income growth increased by 10.7% yoy, driven by 3.3% net interest income and 11.4% fee income growth. K&H granted a total of HUF 380 bln new loans in 2018 (Retail, SME and Corporate). By 31 December 2018 the share of new production housing loans with fixed interest rate increased to 91% up from 48% one year ago.  K&H’s total Retail customer base increased by 1.3% to almost 700 000, yoy. The number of regular income transfer customers increased by 7.1 % yoy to 418 000.  Almost 4,000 businesses joined K&H as new clients in the past year,” said Attila Gombás, CFO of K&H Group.

“In 2018 K&H continued its digital transformation to offer ever simpler and smoother banking and insurance services to its clients

• Over 200 000 of our clients use our mobile bank services actively, 66% more than a year ago.
• Every 4th client of ours already has their biometric profile enabling them to sign their documents in branches electronically.
• We also launched the first fully digitalised, robot operated cash loan service. The result of a collaboration with a fintech, it provides disbursement in 30 minutes, also for new clients, a unique feature in the Hungarian market
• K&H has the largest cash-in ATM network in the country with 212 ATMs .It also has the largest tellerless branch network in Hungary with 44 units.” - announced David Moucheron, CEO of K&H Group.

In 2018 K&H continued to contribute to financing the Hungarian economy and fostering the green economy transition:

• K&H provided HUF 250 billion new loans for corporates.
• It approved credit applications worth HUF 50 bln for solar energy projects creating 150 MW of new “green” capacity.
• K&H concluded a portfolio guarantee agreement of HUF 9.6 billion  with the European Investment Fund to finance high-value, innovative SMEs and small mid-caps  on  favourable conditions.

Nik Vincke, CEO of K&H Insurance added: “In 2018 net profit at K&H Insurance reached HUF 4.5 billion. While income grew by 18% yoy, costs only increased by 3% yoy thanks to increased efficiency in operations. In non-life, premium income reached HUF 36.7 billion, growing by 13% yoy, driven by MTPL. Life brought strong business performance with a 15% yoy growth in pure risk products. K&H launched a fully digital home insurance process whereby a customer can get a quote after answering just 3 questions. Since its introduction online home insurance sales have doubled.”

K&H Bank’s unaudited, consolidated results according to International Financial Reporting Standards (IFRS) were as follows: